Seci Power Sale Agreement

The third agreement was signed with the Kerala State Electricity Board (KSEB) on 6 September 2019. SECI as part of the PSA will sell/supply 100 MW of wind power to Discom. New and Renewable Energy Minister (MNRE) R.K. Singh told the Lok Sabha that electricity supply agreements (PSAs) have yet to be signed for 16.8 GW of renewable energy projects. These projects were initiated by the Solar Energy Corporation of India (SECI). SECI and NTPC sign PPAs with project companies after signing a back-to-back electricity sales contract with Discoms. Unlike NTPC`s PPAs of 2016, the most recent ones announce the name of the discom signed with the back-to-back APV. NTPC`s last PPA is cancelled and terminated without liability, unless the tariff is supported by the relevant discoms (the only condition precedent) that have signed back-to-back PPAs with NTPC. Such a clause did not exist in the PPAs signed by NTPC in 2016. The investment in the development of the project before adoption is linked to the risk of cancellation of the ECA. In addition, the commissioning period is set for the date of signature, whereas it should preferably be linked to the date of tariff assumption by the competent electricity regulatory commission. Mumbai: Renewable energy lenders have long believed that their borrowers` finances are intact as long as these companies have power purchase agreements with reliable counterparties such as solar Energy Corporation of India (SECI) and the National Thermal Power Corporation of India (NTPC) and not with less reliable state-owned distribution companies. That may not be the case, a research report by rating agency India Ratings has found.

The state cabinet has approved the project, which will generate investments of 750 billion rupees, said shrikant Sharma, spokesman for the UP government here. He said the floating photovoltaic power project on the surface of the water would produce 150 MW of electricity and be completed in the next 21 months. The pooled tariff is the weighted average of the tariffs established in the calls for tenders for a given period. Some auctions lead to lower bids than others, and it is relatively difficult to sell electricity to DISCOMs at higher rates. Thus, the tariffs are grouped in such a way that the DISCOMs obtain electricity at average rates. In July, we reported that SECI had announced the signing of two new agreements with two Power Discoms in Delhi and Rajasthan. The first PSA and the latest agreement were signed between SECI and Rajasthan Urja Vikas Nigam Limited (RUVNL) for the sale/supply of 680 MW of solar electricity. India Ratings has looked at the fine print in several Power Purchase Agreements (PPAs) signed between renewable energy developers and NTPC and SECI. They found that although payment obligations are direct obligations, all other risks and obligations would be made on a pass-through basis. The emphasis on the fact that SECI and NTPC are merely intermediaries and bind PPAs signed with a developer to a power sales agreement (PSA) signed with a specific distribution company (whose name is itself indicated in PPA) indicates a tendency to limit commitments for SECI and NTPC. In fact, more recent tariffs, signed in 2019 by both SECI and NTPC, go further by limiting their own risk in the event of failure on the part of discoms. Experts will tell you that the long-term cost of electricity will tend to be close to zero.

In fact, even Mr. R.K. Singh, the Minister of the MNRE, has repeatedly pointed out that electricity costs will be halved in the future in an as yet undetermined period. Does this mean that you have to stop everything to wait for the day? Last month, several reports reported the failure of the Solar Energy Corporation of India (SECI), a major node organization that conducted supply-wide solar auctions to sign PPAs (Power Purchase Agreements) with winning developers. SECI, meanwhile, holds responsible for the delay on the part of solar panels to register for the return PSA (Power Sales Agreements) it signed with them…